Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Carvana's free cash flow improved significantly in the quarter, driven by a sharp increase in operating cash flow relative to revenue. The free cash flow margin expanded compared to both the prior quarter and the same quarter last year.
- Revenue was higher, and operating cash flow increased substantially, leading to a higher free cash flow after modest capital expenditure. The resulting free cash flow margin improved, reflecting stronger cash conversion from revenue.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the margin improved. Versus the same quarter last year, all metrics were also higher, with the margin showing an improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$949.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$205.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$232.0M
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
4.8%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-06-30 | $3.4B | $354.0M | $22.0M | $332.0M | 9.7% |
| 2024-09-30 | $3.7B | $403.0M | $27.0M | $376.0M | 10.3% |
| 2024-12-31 | $3.5B | $60.0M | $24.0M | $36.0M | 1.0% |
| 2025-03-31 | $4.2B | $232.0M | $27.0M | $205.0M | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, reflecting improved conversion of revenue into cash.
This increase in operating cash flow was the primary driver of the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow increased substantially, leading to a higher free cash flow after modest capital expenditure. The resulting free cash flow margin improved, reflecting stronger cash conversion from revenue.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the margin improved. Versus the same quarter last year, all metrics were also higher, with the margin showing an improvement.
Monitor the sustainability of operating cash flow levels as the company continues to rely on operating activities to fund growth, as noted in its liquidity discussion.